Property tax cheats in IRD sights
The tax office is stepping up a campaign against property speculators who are not paying tax in the booming Auckland real estate market.
Thursday, January 27th 2005, 8:48PM
by The Landlord
An initial crackdown on people making money out of property transactions in the city has been so successful that Inland Revenue is pouring more money and staff into uncovering what it says is an escalating problem.Targeting property tax cheats resulted in the department getting an extra $106.6 million nationally, including an extra $52.9 million from Auckland.
One senior Auckland official says he is "stunned" at the level of tax evasion on Auckland property deals, and the IRD plans to step up its resources in the area by 30 per cent.
The high volume of Auckland residential property sales and building consents issued in the past two years alerted the department to investigate, after a crackdown in Queenstown, Wanaka and Te Anau.
The department is pleading for people to declare profits on property transactions and has stiff penalties and court prosecutions for those who deliberately cover up their deals.
In the past 18 months, the department actively looked for those not paying tax, a practice that in the year to June pulled in an extra $29.9 million from the city.
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